20050511Final Order No 29782.pdf

Office of the Secretary
Service Date
May 11 2005
BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION
IN THE MATTER OF THE APPLICATION OF
DIRECT COMMUNICATIONS, ROCKLAND
INC. FOR AN INVESTMENT TAX CREDIT FOR)
INSTALLING QUALIFIED BROADBAND
EQ UIPMENT
CASE NO. DCM-O5-
ORDER NO. 29782
On April 11 , 2005 Direct Communications Rockland Inc. ("Direct
Communications ) filed an Application requesting that the Commission find the Company
eligible to receive an Idaho Investment Tax Credit. Pursuant to Idaho Code ~ 63-30291, an Idaho
taxpayer may receive a tax credit for installing "qualified broadband equipment" in Idaho. To be
eligible for the tax credit, the taxpayer must obtain an Order from the Commission confirming
that the equipment has been installed and that it meets the definition of qualified broadband
equipment set out in Idaho Code ~ 63-3029I(3)(b). In the case of a telecommunications
provider, the qualified broadband equipment must also "be necessary to the provision of
broadband service and an integral part of a broadband network." Idaho Code 63-
3029I(3)(b )(i).
THE APPLICATION
Direct Communication s Application states that it installed central office equipment
fiber and copper cables to provide Asynchronous Digital Subscriber Line (ADSL) services to
Idaho customers. This equipment provides service at speeds of 512 000 bits per second for
uploads from customers and 8 000 000 bits per second for downloads to customers. The
Company provides that this equipment is necessary and integral to its broadband network and
that 100% of the investment will be used to provide services to Idaho customers. The
Application identified over $500 000 of investment in 2004.
ST AFF REVIEW
Staff reviewed the list of proposed broadband equipment submitted by Direct
Communications and found that it complies with Idaho Code ~ 63-3029I(3)(b) and Procedural
Order No. 28784. Staff determined that the equipment is "qualified broadband equipment"
capable of transmitting signals at a rate of at least 200 000 bits per second (bps) to a subscriber
and at least 125 000 bps from a subscriber pursuant to Idaho Code ~ 63-3029I(3)(b). Staff also
ORDER NO. 29782
determined that the expenditures identified by Direct Communications, a telecommunications
provider, were for equipment that is "necessary for the provision of broadband services and an
integral part of a broadband network.Idaho Code ~ 63-3029I(3)(b)(i). Therefore, Staff
recommended that the Commission issue an Order approving Direct Communication
Application.
COMMISSION FINDINGS
Based upon our review of the Application and Staff recommendations, we find that
the Application for a qualifying broadband equipment Order should be granted.Direct
Communications has adequately demonstrated that the equipment identified in its Application is
qualifying broadband equipment subject to the tax credit.We further find that Direct
Communications is a telecommunications carrier and, as configured, the installed equipment is
an integral part of a broadband network necessary to deliver broadband services to Idaho
customers. Idaho Code ~ 63-3029I(3)(b)(i). It is therefore appropriate for the Commission to
issue this Order confirming that the equipment identified by Direct Communications is qualified
broadband equipment.
ORDER
IT IS HEREBY ORDERED that Direct Communications, Rockland Inc.
Application for an Order certifying it has installed qualifying broadband equipment is granted.
IT IS FURTHER ORDERED that a copy of this Order and a copy of the Application
be served upon the Idaho State Tax Commission.
THIS IS A FINAL ORDER. Any person interested in this Order (or in issues finally
decided by this Order) may petition for reconsideration within twenty-one (21) days of the
service date of this Order with regard to any matter decided in this Order. Within seven (7) days
after any person has petitioned for reconsideration, any other person may cross-petition for
reconsideration. See Idaho Code ~~ 61-626 63-30291(4).
ORDER NO. 29782
DONE by Order of the Idaho Public Utilities Commission at Boise, Idaho this
/ /
.f1-
day of May 2005.
1J~
MARSHA H. SMITH, COMMISSIONER
ENNIS S. HRNSEN-, COMMISSIONER
ATTEST:
O:DCMT0501 kdp
ORDER NO. 29782